Chapter 3, Problem 15P

Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2020, by issuing 10,200 shares of $10 par value common stock. Haynes’s shares had a $15 per share fair value. On that date, Turner reported a net book value of $106,150. However, its equipment (with a five-year remaining life) was undervalued by $9,050 in the company’s accounting records. Also, Turner had developed a customer list with an assessed value of $37,800, although no value had been recorded on Turner’s books. The customer list had an estimated remaining useful life of 10 years.   The following balances come from the individual accounting records of these two companies as of December 31, 2020:     Haynes Turner Revenues $ (718,000 ) $ (332,000 ) Expenses   461,000     142,000   Investment income   Not given     0   Dividends declared   130,000     90,000     The following balances come from the individual accounting records of these two companies as of December 31, 2021:…

Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2020, by issuing 11,700 shares of $10 par value common stock. Haynes’s shares had a $15 per share fair value. On that date, Turner reported a net book value of $134,050. However, its equipment (with a five-year remaining life) was undervalued by $7,550 in the company’s accounting records. Also, Turner had developed a customer list with an assessed value of $33,900, although no value had been recorded on Turner’s books. The customer list had an estimated remaining useful life of 10 years.   The following balances come from the individual accounting records of these two companies as of December 31, 2020:     Haynes Turner Revenues $ (730,000 ) $ (240,000 ) Expenses   493,000     125,000   Investment income   Not given     0   Dividends declared   120,000     50,000     The following balances come from the individual accounting records of these two companies as of December 31, 2021:…

Haynes, Inc., obtained 100 percent of Turner Company’s common stock on January 1, 2017, by issuing 9,000 shares of $10 par value common stock. Haynes’s shares had a $15 per share fair value. On that date, Turner reported a net book value of $100,000. However, its equipment (with a five-year remaining life) was undervalued by $5,000 in the company’s accounting records. Also, Turner had developed a customer list with an assessed value of $30,000, although no value had been recorded on Turner’s books. The customer list had an estimated remaining useful life of 10 years.The following balances come from the individual accounting records of these two companies as of December 31, 2017:The following balances come from the individual accounting records of these two companies as of December 31, 2018:a. What balance does Haynes’s Investment in Turner account show on December 31, 2018, when the equity method is applied?b. What is the consolidated net income for the year ending December 31, 2018?c.…